Hello all,
Total noob here (yes, another one). About to dip our toes into the property investment waters. Have learnt bucketloads from this site over a couple of years of lurking, so thank you all very much indeed. I have a question, however, that I don't think I've seen come up before.
We've found a villa unit in inner Melbourne that we're interested in buying. It's one of five on the block and will be sold tonight (boardroom auction set up). My concern is that, according to the Sec 32, there is no body corporate for the block. This is the wording from the contract:
9.1 The Purchaser acknowledges that there is no Operative Owners Corporation in relation to the common property for xxxx. The Vendor has made
Endeavours to the have the Owners Corporation (Formally Body Corporate) established and other owners have declined to do so.
9.2 The Purchaser acknowledges that the Vendor solely holds Public Liability Insurance on behalf of the Owners Corporation to the amount of $20million for the common property, details of which are provided in the Section 32 Vendor Statement attached to this contract. The Purchaser shall, if required to do so in writing, use her best endeavours to assist the purchaser by arranging an assignment of the said policy.
9.3 The Purchaser agrees not to make any claim for compensation or otherwise against the vendor for any alleged failure to comply with any requirements under the Owners Corporation Act and/or Sale of Land Act.
Should we be concerned? Should we run a mile?
All answers gratefully received.
Total noob here (yes, another one). About to dip our toes into the property investment waters. Have learnt bucketloads from this site over a couple of years of lurking, so thank you all very much indeed. I have a question, however, that I don't think I've seen come up before.
We've found a villa unit in inner Melbourne that we're interested in buying. It's one of five on the block and will be sold tonight (boardroom auction set up). My concern is that, according to the Sec 32, there is no body corporate for the block. This is the wording from the contract:
9.1 The Purchaser acknowledges that there is no Operative Owners Corporation in relation to the common property for xxxx. The Vendor has made
Endeavours to the have the Owners Corporation (Formally Body Corporate) established and other owners have declined to do so.
9.2 The Purchaser acknowledges that the Vendor solely holds Public Liability Insurance on behalf of the Owners Corporation to the amount of $20million for the common property, details of which are provided in the Section 32 Vendor Statement attached to this contract. The Purchaser shall, if required to do so in writing, use her best endeavours to assist the purchaser by arranging an assignment of the said policy.
9.3 The Purchaser agrees not to make any claim for compensation or otherwise against the vendor for any alleged failure to comply with any requirements under the Owners Corporation Act and/or Sale of Land Act.
Should we be concerned? Should we run a mile?
All answers gratefully received.
